Spreads

Much like a Call Warrant, Call Spreads provide the opportunity for enhanced
returns as long as the Underlying Asset closes above the Lower Level at Expiry,
with the maximum redemption value being capped at the difference between the
Upper and Lower Levels. Provided that the Underlying Asset closes above the
Lower Level the payout per product at Expiry is simply the difference between
the final value of the Underlying Asset and the Lower Level, up to the maximum
redemption value. The key difference is that unlike a Call Warrant where the
upside is unlimited, the redemption value of a Call Spread is capped. Because
the potential return is capped, Call Spreads are cheaper than a Call Warrant. So
if you expect a moderate rise in the Underlying Asset, a Call Spread could be
more attractive.

If your view is more defensive, Put Spreads can provide a way to protect
your portfolio against a moderate fall in the value of the Underlying Asset. A
Put Spread will generate an enhanced return based on how far the Underlying
Asset closes below the Higher Level at Expiry. The potential redemption value
this time is however capped at the difference between the Lower and Higher
Levels, hence a capped return.

If at Expiry the Underlying Asset is below the Lower Level in the case of a
Call Spread, or above the Upper Level in the case of a Put Spread, the product
will expire worthless. Capital is fully at risk.

Past performance is not a reliable indicator of future results. Future
performance forecasts are not a reliable indicator of future performance. Gains
or losses can be reduced or increased depending on the exchange rate and does
not take into account charges, fees and charges incurred by any investor (e.g
taxes, fees or other costs incurred by local regulations, brokerage fees or
other fees levied by the financial intermediary). Before any investment, read
the risk factors described in the prospectus available on this site.
Before commencing trading you should be comfortable that covered warrants are a
suitable investment for you. In order to assist you with this assessment, please
see the "Risk Warning".